Hi, I sold stocks this year to pay downpayment on a new house.

Customer Question

Hi, I sold stocks this year to pay downpayment on a new house. I estimated what capital gains would be and prepaid Fed Taxes after we purchased our home. However, I did not prepay state (CA) taxes. Should I pre-pay before the end of the year state capital gain tax as well?

California is a pay-as-you-go tax system. This means you should pay your CA estimated income tax before the of the year to avoid (or lessen) the CA estimated tax penalty. See this CA Franchise Tax Board webpage to see tips on calculating your CA estimated taxes.https://www.ftb.ca.gov/individuals/faq/ivr/208.shtml

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Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. OrvilleHesperia, California

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